Federated Reports November 2004 Sales

From: ASAP

Comments

Federated Department Stores, Inc. (NYSE:FD) (PCX:FD) today reported total sales of $1.434 billion for the four weeks ended November 27, 2004, a decrease of 1.6 percent compared to total sales of $1.459 billion in the same period last year. On a same-store basis, Federated's November sales were down 1.4 percent.

For the year to date, Federated's sales totaled $11.991 billion, up 2.8 percent from total sales of $11.670 billion in the first 43 weeks of 2003. On a same-store basis, Federated's year-to-date sales also were up 2.8 percent.

Terry J. Lundgren, Federated's chairman, president and chief executive officer, said the company was disappointed by its overall November sales performance. "While we were encouraged by sales over the Thanksgiving weekend, it was not enough to offset the weakness in sales that we experienced earlier in the month," Lundgren said.

Lundgren said the company was reaffirming its forecast for a December same-store sales increase of 1 to 3 percent, while revising downward its forecast for the fourth quarter to reflect the disappointing November results. Federated now anticipates fourth quarter same-store sales to be flat to up 1.5 percent, compared to its prior guidance of up 1.5 to 3 percent.

The company also reaffirmed its earnings guidance of $2.45 to $2.55 a share for the fourth quarter.

Federated, with corporate offices in Cincinnati and New York, is one of the nation's leading department store retailers, with annual sales of more than $15.2 billion. Federated operates more than 450 stores in 34 states, Guam and Puerto Rico under the names of Macy's, Bloomingdale's, Bon-Macy's, Burdines-Macy's, Goldsmith's-Macy's, Lazarus-Macy's and Rich's-Macy's. The company also operates macys.com and Bloomingdale's By Mail.

NOTE: This release contains certain forward-looking statements that reflect current views of the financial performance and other events of Federated. The words "may," "will," "could," "expect," "plan," "anticipate," "believe" and other similar expressions identify forward-looking statements. Any such forward-looking statements are subject to risks and uncertainties. Future results or outcomes could differ materially from current expectations because of a variety of factors that affect the company, including competitive pressures from specialty stores, general merchandise stores, manufacturers' outlets, off-price and discount stores, new and established forms of home shopping (including the Internet, mail-order catalogs and television) and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the SEC.